Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst specializing in loan structures and financial risk management.
David Chen is a Certified Financial Analyst specializing in loan structures and financial risk management.
Use this calculator to compute your loan APR based on user-defined values. Enter any three variables to calculate the fourth.
Loan APR Calculator
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Loan APR Calculator Formula
APR = (2 × Number of Payments × Payment Amount) / (Loan Amount × (Loan Term + 1))
Formula Source: Investopedia
- Loan Amount (F): The total amount borrowed.
- Interest Rate (P): The annual interest rate as a percentage.
- Loan Term (V): The duration of the loan in years.
- Monthly Payment (Q): The monthly payment for the loan.
Related Calculators
What is Loan APR?
The APR (Annual Percentage Rate) represents the total yearly cost of a loan, including both interest and fees, expressed as a percentage. It helps borrowers compare different loan offers.
How to Calculate Loan APR (Example)
- Step 1: Enter your loan amount, interest rate, loan term, and monthly payment.
- Step 2: Click “Calculate” to see the APR.
Frequently Asked Questions (FAQ)
What is the APR formula? The APR formula factors in the loan amount, interest rate, term, and monthly payment to calculate the total annual percentage rate.
Can APR be negative? APR can become negative if a loan has very high payments compared to the principal.